The Victoria Harbour Business Loop was established in 1977, when the Victoria Harbour Bypass was completed and opened to traffic. The old alignment of Highway 12
through Victoria Harbour (via William Street, Albert Street, Richard Street, and Park Street) became Highway 12B. The majority of Highway 12B was designated as a
Municipal Connecting Link, even prior to the construction of the Victoria Harbour Bypass. The highway was 3.5 km in length, including the section of Highway 12B under
the jurisdiction of the municipality. The provincially-owned east approach to Victoria Harbour via Park Street was transferred to the Township of Tay on August 29,
1979. The section of Highway 12B lying within the Village of Victoria Harbour lasted only a few more years, before being decommissioned entirely in 1982. The
Municipal Connecting Link Agreement for the remainder of Victoria Harbour's Highway 12B was repealed, effective April 1, 1982. Four other Highway 12B Business Routes
have existed over the years in Port McNicoll,
Orillia, Coldwater and
Gamebridge.